US suspends Microsoft and Adobe from visa program amid fraud allegations

The United States government is suspending several major tech companies, including Adobe and Microsoft, from a program that provides skilled foreign workers a path to permanent residency amid allegations of fraud. This decision follows increased pressure from the White House for companies to hire more American workers. US Vice President JD Vance stated at a news conference on Thursday, "Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers." Vance claimed that Microsoft laid off 6,000 American workers while obtaining 6,300 H-1B foreign work visas and nearly 3,000 permanent residencies known as green cards. He added, "You cannot lay off American workers and replace them with foreign indentured servants." According to Layoffs.fyi, there have been over 131,000 layoffs in the technology sector in 2026 alone. Vance noted that foreign workers are subordinate to their employers and must leave the country if they lose their jobs. Microsoft responded to Vance’s claims in a blog post, stating that "80 percent of the visas were to extend or change the status of existing Microsoft employees." The company further explained that the remaining filings for new employees were for individuals already legally in the United States and represented only 1% of their U.S. workforce. Microsoft ranks fifth among U.S. employers in the use of H-1B visas, with Amazon being the largest user. Adobe did not provide a comment to Al Jazeera. Secretary of Labor Keith Sonderling confirmed that several major IT firms, including Indian companies Infosys and Tata Consultancy Services, will also be suspended from the program. The H-1B program has faced criticism from supporters of former President Donald Trump, who argue that it undermines American workers and is prone to abuse. H-1B visas are designated for high-skilled jobs that are challenging to fill with U.S. workers, with nearly three-quarters of approvals going to workers from India. The Department of Labor reported uncovering $22 billion in visa fraud, with Sonderling stating, "Today we are protecting something far more valuable than any dollar amount. We are protecting the American worker." This announcement coincided with a ceremony where Microsoft CEO Satya Nadella was to receive the National Medal of Technology and Innovation. Nadella, who was born in India, was one of six business leaders honored, five of whom were foreign-born, including Tesla CEO Elon Musk and Google co-founder Sergey Brin. During the news conference, officials also revealed a crackdown on alleged J-1 visa fraud involving nine universities, including MIT, Harvard, Yale, Stanford, and Cal State, amid claims that they brought in international students to lower U.S. wages. Vance asserted that American researchers earn $20,000 more than those employed under a J-1 visa. Al Jazeera requested data to support this claim, but the White House did not respond. Following the news, Microsoft’s stock fell by 1.5 percent, while Adobe’s stock increased by 2.1 percent in late trading on Thursday.